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What's the formula?

New Visitor

What's the formula?

Does anyone know how the score is obtained? Is it +5 for pay offs, +10 for paying revoling credit on time....? How are the scores obtained?
Message 1 of 28
27 REPLIES
Moderator Emeritus

Re: What's the formula?

It's even more secret than the Coke formula.  If FICO tells you, they'd have to kill you. Smiley Happy
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Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.
Message 2 of 28
Senior Contributor

Re: What's the formula?

I hear they kill ya, harvest your organs, send your family a bill for the bullet, and still won't tell.
Message 3 of 28
Valued Contributor

Re: What's the formula?



Digginout wrote:
Does anyone know how the score is obtained? Is it +5 for pay offs, +10 for paying revoling credit on time....? How are the scores obtained?




There is no carved-in-stone formula.

The strategy for raising FICO is simple, even if the execution can be a real pain in the wazoo. Have several lines of credit, but only use a small fraction of each one, and pay your bills on time, every time. There. That's it in a nutshell. Do that, and your FICO is guaranteed to go up. We can't say by how much, or exactly how quickly, and here may be stops and starts...and even the occasional reversal. When you open one credit line too many in the short run and you take an 8-point drop, think of it like an April cold snap: it kinda sucks, but it doesn't mean summer's not going to arrive.

Over time, you WILL raise your credit score if you follow this simple strategy. I've been plugging away at mine for about seven months...my average FICO has gone up from around 590 to around 640. And if I'd been quicker to head off a charge-off that hit me in October, I'd probably be around 670 average by now. The simulators tell me that, even if I don't get any CLIs, I'll hit 680 or so by the end of the year. That's about a 75-point increase in one year. No magic or tricks involved. Just the strategy I outlined in the previous paragraph.
- - - -
in a credit-scoring postnuclear Stone Age...
Message 4 of 28
Frequent Contributor

Re: What's the formula?

Good for you, NewWorldMan!  Good for you!
Message 5 of 28
Moderator Emeritus

Re: What's the formula?

If you PayPal me $10,000,000 I will send you the formula.
Message 6 of 28
Senior Contributor
Moderator Emeritus

Re: What's the formula?

Sorry, we are still trying to figure it out. We post various things that happen to us and that's how we may anticipate an approximation of what we may see. That being said everyone has a unique credit portfolio, so your changes will be different . Now on occasion we have noticed similarities but that seemed to be mostly with people not doing alot of changes at once to alter the outcome. For example someone pays down a credit card and that is the only noted change for the month and recieved somewhere between a 9-15 point boost. Also, this could have been beause their cc util was maxed out and brought it down to <10% util. That's what gives with the secret formula jokes personally I want to know the kfc formula , and what makes pizza hut taste better than the others? 
Message 8 of 28
Moderator Emeritus

Re: What's the formula?

I would pay 10mil for the kfc before FICO. Smiley Happy
Message 9 of 28
Moderator Emeritus

Re: What's the formula?

Can I put it on my AmEx charge card?  There's no pre-set limit.  Smiley Happy
-----------------
Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.
Message 10 of 28